An increase in supply shifts the supply curve:
A) down and to the right.
B) down and to the left.
C) up and to the right.
D) up and to the left.

Question

Quizplus · Accepted Answer

An increase in supply means more goods or services are being produced, causing the supply curve to shift to the right (along the x-axis), indicating a higher quantity supplied at any given price level. The downward direction indicates that producers are willing to supply more at lower prices. Therefore, choice A, down and to the right, is the correct answer.

An Increase in Supply Shifts the Supply Curve